The talks took place during a visit to Ankara yesterday by Iran’s Oil Minister Masoud Mir-Kazemi, Turkish Energy Minister Taner Yıldız told reporters Friday.
Any pipeline would be built by private companies and Turkey would not be a partner, he said.
A pipeline with annual capacity of 10 billion cubic meters supplies Turkey with Iranian gas. The link was damaged in a July 21 explosion officials blamed on the Kurdistan Workers’ Party, or PKK.
Earlier Friday Iran's Oil Ministry said the country had signed a 1 billion euro ($1.3 billion) pipeline deal to take gas to Turkey, while Ankara denied the Turkish state was involved and a firm called Som Petrol said it was the partner.
"The one billion euro deal to build 660 km gas pipeline was signed on Thursday during the Iranian Oil Minister's trip to Turkey," the Iranian oil ministry said in a statement.
A senior Iranian official said Iran would pay a transit fee to export its natural gas to Europe using the pipeline crossing Turkey.
"The deal was signed between National Iranian Gas Export Co. and Turkey's ASB Co.," Javad Oji, head of the NIGC, told the Iranian Oil Ministry's official website SHANA.
"The pipeline will enable Iran to export 50 to 60 million meters of gas per day ... It will be constructed within three years."
Turkey needs more energy investment
Turkey will need to invest in its energy sector to secure sufficient supplies as demand rises, the International Energy Agency said today.
“Turkey will likely see the fastest medium to long-term growth in energy demand among the IEA member countries,” Nobuo Tanaka, the IEA’s executive director, said today in Ankara, according to a statement on the Paris-based adviser’s website.
Turkey’s economy expanded 11.7 percent in the first quarter from a year earlier. Turkey’s economy may expand 6 percent this year, Industry Minister Nihat Ergün said yesterday.
Turkey needs large investments in electricity and natural gas to supply affordable energy and to sustain rapid economic growth, he said. “Power sector reform is well under way, but in the natural gas sector reform has been slower and needs to be accelerated,” Tanaka said.
Turkey also has “large” potential to improve energy efficiency and limit carbon dioxide emissions which are likely to increase rapidly over the medium and long term, as energy demand rises, Tanaka said.
The IEA urged Turkey to set a target for limiting carbon- dioxide emissions even as the country plans to increase the use of renewable energy sources and to build nuclear power.
Tanaka also urged Turkey to increase emergency oil reserves and gas storage as imports almost double over the next year, by “swiftly” building a stockholding agency. IEA member countries are required to hold oil stocks equivalent to at least 90 days of net oil imports.
Turkey emitted 271.5 million metric tons of carbon dioxide from consumption and flaring of fossil fuels in 2008, according to the latest figures from the U.S. Energy Department. That is 5.8 percent of the total in Western Europe, the data show.
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